Wednesday, April 22, 2015

My friend and fellow Seeking Alpha writer Michael Hooper cited
a compelling quote from Charles Mackay, a 19th century author
who wrote “Extraordinary Popular Delusions and the Madness of Crowds”:

"During the progress of
this famous bubble (The South Sea Bubble), England presented a singular
spectacle. The public mind was in a state of unwholesome fermentation. Men were
no longer satisfied with the slow but sure profits of cautious industry. The
hope of boundless wealth for the morrow made them heedless and extravagant for
today."

Friday, April 17, 2015

The way I see it the stock market is a tool where long-term
publicly traded business owners can buy shares of great companies. It is also a
way to sell shares decades down the road to fund retirement, start a business
of your own or to exit businesses that fell into subpar status.

Wednesday, April 15, 2015

Remember when investing in the stock market diversification
is key. One stock can more than make up for the losses of the other. It’s also
important to keep cash for emergencies and investment opportunities (once the
emergency fund is in place).

Monday, April 13, 2015

A good way to get started on a path to successful stock
market investing is to think of stocks as publicly traded businesses. Investing
in companies that sell needed or highly wanted products, sells a unique product
and sits behind a wide proverbial moat will do better than a company with many
competitors and sells products with trend driven demand.